Come financial year-end many businesses are eager to finish up for the period and tie up loose ends… however, it is essential that the payroll administration function is comprehensively dealt with warns HR and HCM services and solution specialist CRS Technologies.
HR experts at the company say that despite its critical importance, companies often overlook the payroll department and its role in helping to efficiently round off the year.
Businesses often fail to understand the consequences of late filing, and procrastinate with the filing process leaving them pressurised at the deadline and effectively ‘working harder not smarter’.
It is important to remember that the payroll department is required to ensure that all payments have been made to employees and third parties to close the payroll off says HR & Payroll Compliance Consultant Sean van Wyk.
“No other supplementary payments should be made once closed off as this will directly affect the balancing of the year end in terms of the Payroll System and SARS. Checking SARS errors will be the next step,” says van Wyk.
With the fundamental role that payroll administration plays in business, it is crucial that decision makers consider all factors and aspects that influence this process.
The first is timing. According to van Wyk it is essential that deadlines are adhered to, particularly in terms of year-end submissions. “Employers face harsh penalties for late submissions,” he explains.
The second is communication. CRS Technologies advises that all departments should communicate during this crucial period to ensure that all deadlines are met.
“Harsh penalties await the companies that do not meet the deadlines prescribed. The sooner you plan for year-end, the easier it will be,” Van Wyk advises.
CRS Technologies is a specialist experienced service provider with a comprehensive portfolio of solutions that are designed to help businesses effectively manage important processes, including tax year-end administration.